The Entrepreneurial State: Debunking Public vs. Private Sector Myths (Revised) Spiral-Bound | October 27, 2015

In this sharp and controversial exposé, Mariana Mazzucato debunks the pervasive myth that the state is a laggard, bureaucratic apparatus at odds with a dynamic private sector. She reveals in detailed case studies, including a riveting chapter on the iPhone, that the opposite is true: the state is, and has been, our boldest and most valuable innovator. Denying this history is leading us down the wrong path. A select few get credit for what is an intensely collective effort, and the US government has started disinvesting from innovation. The repercussions could stunt economic growth and increase inequality. Mazzucato teaches us how to reverse this trend before it is too late.

Introduction: Thinking Big Again

1. From Crisis Ideology to the Division of Innovative Labour
2. Technology, Innovation and Growth
3. Risk-Taking State: From ‘De-risking’ to ‘Bring It On!’
4. The US Entrepreneurial State
5. The State behind the iPhone
6. Pushing vs. Nudging the Green Industrial Revolution
7. Wind and Solar Power: Government Success Stories and Technology in Crisis
8. Risks and Rewards: From Rotten Apples to Symbiotic Ecosystems
9. Socialization of Risk and Privatization of Rewards: Can the Entrepreneurial State Eat Its Cake Too?
10. Conclusion

“[Mazzucato] argues persuasively that a successful, innovative society must draw on symbiotic partnerships between governmental and private entities.” —Richard N. Cooper, Foreign Affairs

"Conventional economics offers abstract models; conventional wisdom insists that the answer lies with private entrepreneurship. In this brilliant book, Mariana Mazzucato…argues that the former is useless and the latter incomplete." —Martin Wolf, Financial Times

"Mazzucato argues that long-term, patient government funding is an absolute prerequisite for breakthrough innovation….Even if you disagree with Mazzucato’s argument, you should read her book. It will challenge your thinking." —Bruce Upbin, Forbes

"It is one of the most incisive economic books in years." —Jeffery Madrick, New York Review of Books

"Ms. Mazzucato is right to argue that the state has played a central role in producing game-changing breakthroughs, and that its contribution to the success of technology-based businesses should not be underestimated." —The Economist

"[A] meticulously argued treatise that shows how unwise our conventional wisdom has become." —Christopher Dickey, Newsweek

"[P]rovides persuasive evidence that governments deserve more credit than private companies for the development of most important modern technologies." —Edward Hadas, Reuters

"[A] skillful combination of the history of technology, empirical evidence, and policy analysis…the book contains a critical reading of data and arguments that run counter to established views while never falling short of offering constructive solutions." —Davide Consoli, Science

"Makes an engaging, persuasive case in favor of the state, and suggests one recommend it not just as an instrument of market repair but also as a prerequisite for future prosperity." —J. Bhattacharya, Choice

"In this trailblazing book on the role of government as both a risk-taking funder of innovation and a market creator, Mariana Mazzucato persuasively argues that the government is a key enabler of technological innovations that drive economic growth.…This important book should be read by policymakers, opinion leaders, and others with a stake in funding economic growth." —Arnold T. Davis, CFA Institute

"[P]rovides a refreshing new take on rather stale debates on the economic role of government." —Globe and Mail (UK)

"[A] well-researched and elegantly (even entertainingly) written knock-out to the belief [that] 'the market knows best.'" —Professor Robert Wade, London School of Economics

"[A]ims to get us to understand better the sources of entrepreneurship, and to reflect more positively on the role aggressive technology policies can play in getting our economies moving again." —Professor Richard Nelson, Columbia University

"[This book] has helped to persuade me to shift our approach in the UK." —David Willetts, UK Minister for Universities and Science

"This is a book whose time has come. Mariana Mazzucato documents how the state played a crucial role behind some of the landmark innovations of our time. For many, the ‘entrepreneurial state’ is a contradiction in terms. For Mazzucato, it is both a reality and a requirement for future prosperity.” —Dani Rodrik, Rafiq Hariri Professor of International Political Economy, John F. Kennedy School of Government, Harvard University

Professor Mariana Mazzucato (PhD) holds the RM Phillips chair in the Economics of Innovation at SPRU in the University of Sussex. She has held academic positions at the University of Denver, London Business School, Open University, and Bocconi University. Professor Mazzucato is winner of the 2014 New Statesman SPERI Prize in Political Economy and the 2015 Hans-Matthöfer-Preis. In 2013 the New Republic called her one of the '3 most important thinkers about innovation'. She advises policy-makers around the world on innovation-led growth and is a member of the Scottish Government’s Council of Economic Advisers, the UK Labour Party’s Economic Advisory Committee, the World Economic Forum’s Council on the Economics of Innovation; and the European Commission’s expert group on Innovation for Growth (RISE). Her 2013 TED Global talk, with more than 700,000 views.